What kind of fiscal policy would work fastest during a recession and would be effective at growing the economy, as opposed to working more slowly during a recession?
Items (4 items) (Drag and drop into the appropriate area below)
Unemployment compensation is available for twice as long as it was previously.A law is passed to build a new road and bridge in the state.The government hires one million workers to reduce wait time at government offices.The value of food stamps increases by 50%.
As an elected official, you have been informed that real GDP is below its potential and that action should be taken to encourage economic growth and bring the economy to its long-run equilibrium. The marginal propensity to consume is 0.6, and the amount of new government spending is $600 billion.

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